Functional separation of Telmex by the end of 2018Business Mexico 

América Móvil to create new company by end of 2018

Mexico City, D.F. — América Móvil expects that by the end of this year it will obtain the authorization of the Federal Institute of Telecommunications (Ifetel) to carry out the functional separation of Telmex in order to comply with the new regulation of preponderance, said Daniel Hajj, general director of the company.

The functional separation is that América Móvil will have to create a company independent of its fixed telephone lines, Telmex and Telnor, to provide wholesale services related to local access, as well as the sharing of passive infrastructure, that is, this new company will rent the network of Telmex and Telnor to other companies.

“We are reviewing different aspects of the separation and are meeting the requirements and presenting more information. We expect Ifetel’s approval in the fourth quarter of this year or in the first quarter of 2018,” Hajj explained. He commented that the company is waiting for the court ruling on its amparo against the zero interconnection rate.

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